I frequently write articles trying to get you to take certain actions in order for you to avoid having aged inventory.
The more I study the subject and the more dealers I work with, the more I become convinced that there’s very little money being made on anything over 30 days old.
The biggest problem with aged units is the impact on your ability to sell cars today. Nope, I’m not even talking about your ability to price and sell the aged units. I’m talking about your ability to trade for more vehicles as you work new and used car deals.
When you have aged units, there’s a little voice deep inside the dark corner of your brain saying, “Hey, be very careful, don’t step up too much on that trade. Bossman, you’ve got a bunch of other issues out there on the lot and if you step up on this one, you’re just creating more problems.”
It’s not just that you can’t make any money on the aged units; you can’t sell fresh units or new units because your existing inventory keeps your brain all twisted up.
Keep an eye on that dark corner inside your brain. That’s all I’m gonna say.Tommy Gibbs